Getting the best return on the employee benefit dollar

Area of Science:

• Healthcare Management
• Human Resources
• Organizational Psychology

Background:

• Employee benefits' value is subjective, based on employee perception rather than inherent worth.
• Hospitals face pressure to optimize benefit spending for maximum employee morale impact while managing costs.

Purpose of the Study:

• To determine which employee benefits are most valued and which elicit the highest satisfaction.
• To assess if employee job category influences benefit perception.
• To guide hospital management in reallocating benefit resources effectively.

Main Methods:

• Utilized a hospital-specific employee attitude survey developed by Parkside Associates, Inc.
• Employees rated benefits on importance and satisfaction levels.
• Data collection focused on employee perceptions of benefit value and quality.

Main Results:

• Employee perceptions are the primary driver of benefit value.
• Identified a need to differentiate between benefit importance and satisfaction levels.
• Highlighted the potential for job category to influence benefit preferences.

Conclusions:

• Hospitals can strategically adjust benefit offerings based on employee feedback.
• Recommendations include reducing unimportant benefits, restructuring low-satisfaction benefits, and offering flexible (cafeteria) plans.
• Enhancing employee awareness of existing benefits can also improve perceived value.